Sony PlayStation Network (PSN) Hacked and Customer Information Stolen

Sony has been dealt a major blow last week when its PlayStation Network (PSN) was hacked and personal information of about 77 million accounts was stolen. After the PSN was down for a week plus, Sony belatedly made the official announcement that they are a victim of some hacker who obtained information such as name, address, date of birth, password and even credit card information if you have it stored in your PSN account. Obviously PSN users all over the world are pissed at Sony’s late actions and severely damaged their reputation and their CEO’s goal of having all Sony media electronics connected and unified in a common shared platform. This security breach has put a serious dent on the users’ trust in Sony’s system. Sony’s slow reaction and late disclosure has angered users who were not aware of the details of the breakdown and could have executed their personal mitigation steps in protecting their personal information like cancelling the credit card linked to the PSN account.

People are starting to file lawsuits against Sony for this matter and we expect there are more to come. Sony is going to pay a very heavy price on this. Do not forget that the downtime has cost Sony millions of dollars considering the revenue which they gain from the PSN activities of approximately $10 million per week. Even if they ended up paying $1 for each customer/account, that’s $77 million. If they pay $2 each, an additional digit is added to the payout amount ($154 million). And quoting the $1 and $2 price is merely to cite examples. I would feel really devalued if I get paid only $2 for them risking my personal information.

The ripple effects of identity theft would be hard to assess in terms of the true damages. All the hassle they caused me could have cost a lot of people a lot of time and money. I am not going to put my credit card info on PSN anymore.